THE Lloyds and Royal Bank of Scotland groups could be forced by EU laws to move to London if the SNP succeed in breaking up the UK.

Under the laws, head offices and registered offices of financial institutions must be in the same country.

The European Council directive, which dates from 1995 and has never been tested in court, also implies both registered and head office should be located in the country where most of a bank’s business is done.

Lloyds and RBS have their HQs in Edinburgh, registered offices in London and 90 per cent of their customers are south of the Border.

The latest blow to Alex Salmond’s separation plans was revealed in a blog by BBC Business Editor Robert Peston – on the same day Lloyds became the latest financial giant to warn of the dangers of Scotland breaking away from the UK.

In its annual report yesterday, Lloyds, which includes the Bank of Scotland, claimed that independence could damage its business.

The group said a Yes vote in September’s referendum could have a “material impact” in a number of key areas, including tax and the cost of funding the group.

Former Chancellor and Better Together leader Alistair Darling said: “Firstly Lloyds, a major employer in Scotland, talked of the impact going it alone would have on its business.

“Now we there is a threat EU law would require some of our biggest institutions to leave the country in order to be where their main customer base is.

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Last week, Standard Life and the Royal Bank of Scotland both said a Yes vote would pose a risk to their businesses

“If we want to protect Scottish jobs, then we have to vote to stay in the UK.”

A Treasury spokesman said: “Lloyds have now joined RBS and Standard Life in reasonably and fairly pointing out the risks and costs that arise from independence.”

“These interventions show the strength and stability of the UK is the essential underpinning of Scotland’s financial services sector.”

But Finance Secretary John Swinney said: “Lloyds Banking Group’s comments show why our proposals for a formal currency area are the right ones, and why they are in the best interests of business on both sides of the Border and why that is what will be implemented by both governments.”

Lloyds is the third Scottish financial giant to warn of separation risks.

Last week, Standard Life and the Royal Bank of Scotland both said a Yes vote would pose a risk to their businesses.

Standard Life said it was ready to relocate parts of its business south if Scots vote to break away.

Lloyds voiced its fears in a section of its report headed “Scottish independence”.

It said: “The impact of a Yes vote in favour of Scottish independence is uncertain. It could have a material impact on compliance costs, the tax position, and cost of funding for the group.”

The warning also follows reports that the TSB, wholly owned by Lloyds, will be domiciled south of the LBorder rather than Scotland for tax reasons.